October 30, 2015 (UltiPro v12.0.

2)

General Ledger and Labor Allocations Guide

Topics covered:
General Ledger Overview ..................................................................................................................................... 1
Labor Allocations Overview ................................................................................................................................. 2
General Ledger Configuration ............................................................................................................................... 6
General Ledger References ................................................................................................................................... 13
Process General Ledger ......................................................................................................................................... 14

General Ledger Overview

A General Ledger (GL) acts as the central repository of data for an organization's accounting information. This
repository records how money flows in and out of an organization relating to assets, liabilities, revenues, and
expenses. A general ledger also provides comprehensive reporting of financial activity by feeding accounting
information into financial statements. UltiPro provides flexibility to track as much or as little information at the
level of detail required for your organization.

The GL feature in UltiPro provides the debit and credit data comprised of earnings, accruals, taxes, workers'
compensation, and deductions generated through payroll. The GL tracks each component that makes up an
employee’s paycheck (hours worked, earnings, deductions, and so on) and stores it in history tables. These
history tables form the basis for the general ledger.

The general ledger feature provides all the data your accounting system requires to produce a general ledger,
allocate labor, and produce reports. There are three parts to the GL feature:
 Labor Allocation
 General Ledger
 GL Export

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October 30, 2015 (UltiPro v12.0.2) General Ledger and Labor Allocations Guide

Labor Allocations Overview

When processing a payroll, all of the components that make up employees' pay checks are assigned specific
allocation according to employees' organization. By configuring your company labor allocations and assigning
allocations to your employees' wages, debits and credits can be reported to specific GL accounts in the general
ledger.

UltiPro can allocate hours and dollars to different cost centers through a feature called Labor Allocations. Labor
Allocations automatically or manually allocate your employee’s time worked to your company cost centers.
Once a payroll is posted, the hours and dollars allocated to specific cost centers are recorded as separate record
to the payroll history files.

Configure Earnings Labor Allocations

Labor allocations are defined at both the company and employee level. At the company level, labor allocations
establish which payroll components to allocate for your general ledger. Available labor allocations include
employer taxes, employee taxes, employer deductions, employee deductions, and more.

To direct the system to allocate specific earnings automatically, designate each earning qualified for allocations
in the business rules. Configure the Include In Allocations option for each earnings code you want allocated.
Note:
Earnings not included in allocations are reported to the employee's home cost center.

Assign labor allocations on earnings codes

NAVIGATION: System Configuration > Business Rules > Earnings > select earnings code

1. From the Earnings Setup page, navigate to the Details step.

2. From the Include Earnings In section, select the Allocations check box.
3. Select Save.

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General Ledger and Labor Allocations Guide October 30, 2015 (UltiPro v12.0.2)

Configure Employee Labor Allocations

At the employee level, labor allocations automatically allocate dollars and hours to different cost centers per
employee. Employees' time can be allocated to cost centers such as departments, divisions, or projects.

This allocation method allocates a specific percentage of employees' wages to the different cost centers to equal
100%.
Important!
The Auto Allocate feature allocates all employees' wages according to a percentage, not specific time
worked. This method is typically used for auto paid employees. Labor allocations for hourly employees
can also be defined using the manual allocation method (such as through a time clock import).

Configure automatic employee allocations:

NAVIGATION: Employee Admin > My Employees > select employee > Jobs > Allocations

1. From the Allocations page, check the Auto Allocate Employee check box. The Add becomes available.
2. Select Save. The auto allocation feature is enabled.

3. From the Allocations page, select Add.

4. From the Add/Change Allocations page, enter an allocation percentage.
5. From the Allocation field, enter the percentage of time allocated to the employee's assignment.
6. Define each of the cost centers to allocate the employee's wages. The cost centers default to the home cost
center with 100% of the employee’s time allocated to those organization levels. As you add records to the
Allocations page, the specified amount reduces the home cost center. The total allocation percentages must
equal 100%.
Note:
Your company configuration determines the cost centers available.

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October 30, 2015 (UltiPro v12.0.2) General Ledger and Labor Allocations Guide

7. Select Save. The Allocations page appears with the new information.

8. Select Save.

Define Labor Allocations Manually

Nonexempt employees' hours can be allocated manually according to the time spent in each cost center. Instead
of using the auto allocation feature, allocate employee hours manually through a time clock import in payroll.
Each allocation appears as a separate earning on the employee's paycheck with the associated cost center
assigned.

Once the payroll is posted, review the Summary Payroll Register and Detail Payroll Register.

For example, an employee works 12.50 hours on project FORCE, 33.00 hours on project EYE, and 34.50 hours
on project SEA. These hours are either manually entered on the employee's check or imported through a time
clock import. The employee's pay check contains three records of Hourly Pay allocated to these three projects.

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General Ledger and Labor Allocations Guide October 30, 2015 (UltiPro v12.0.2)

Override Employee Allocations in Payroll

In some situations, employees' earnings need to be adjusted manually on a specific payroll. You can manually
override earnings on employees' pay checks to:
 Include or not include in the employee's auto allocation
 Overridden with a different cost center allocation
To override an auto allocation in payroll, use the Auto Allocate on Post column on the employee's pay check
page. The Allocate on Post column indicates whether the earning is included in the auto allocation. Select Yes to
include the earning in the auto allocation; select No to exclude the earning in the auto allocation.

Note:
If you change an employee's cost center that was marked to Include in Allocations, the system
automatically selects the Allocate on Post option as No for all earnings.

You can also manually change the allocation assigned to earnings for the current pay period. To change the
allocation, select each cost center assigned to the earnings from the drop-down list. If you do not see the cost
center column available on an employee's pay check, select Columns to add the specific column to the page.

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October 30, 2015 (UltiPro v12.0.2) General Ledger and Labor Allocations Guide

General Ledger Configuration

There are four business rules in UltiPro used to configure the General Ledger.
 GL Base Accounts
 GL Segment Sequence
 GL Chart of Accounts (optional)
 GL Rules

Configure GL Base Account

Define your company's base accounts from the GL Base Accounts page.

Developing the base account structure provides flexibility to configure a simple or complex general ledger. The
GL Base Account codes are used as the fixed portion of your GL account number. The GL base account
description reports on the GL Summary Distribution report as the GL Account description. Although base
accounts are an optional component of the general ledger account, base accounts are typically included in the
segment sequence structure. Your base accounts are usually configured during implementation for earnings,
deductions, taxes, net pay, and more.

For a complete list of your company's GL base accounts, generate the GL Base Accounts standard report. This
report provides the GL base account codes and descriptions.

Add a GL base account:

NAVIGATION: System Configuration > Business Rules > GL Base Accounts

1. From the GL Base Accounts page, select Add. The Add Record page appears.
2. Enter the Code using your accounting information.
3. Enter the description of the GL base accounts.
4. Select Add. The Add Record page disappears.
5. Select Save at the top of the page.
Note:
Any base account associated with a general ledger rule cannot be deleted. Before deleting a base
account, update the general ledger rules currently using this base account with another base account.

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General Ledger and Labor Allocations Guide October 30, 2015 (UltiPro v12.0.2)

Configure GL Segment Sequence

GL account number consists of cost center information, base accounts, and constant values unique to your
accounting system. Your company defines which cost centers are valuable for reporting, budgeting, and analysis.
For example, regions, offices, and jobs can be used to track the cost associated with each. These cost centers are
referred to as segments of the general ledger. Segment Sequences are segments linked together to form the GL
account number.

Segment sequences contain a maximum of 10 segments and 50 positions. You can designate the following
payroll components as segments of the GL account number:
 Company code
 Organization levels (one through four)
 Location codes
 Job codes
 Pay groups
 Base account
 Project
Note:
When configuring Projects in a segment sequence, the project code is automatically used as the GL
segment when saved. You can add a description for the code in the Project business rule.

A Constant can also be added to a segment sequence as a permanent value. Constants provide flexibility to add a
user-defined character or string of characters as a delimiter for your GL segment sequence.

Each GL segment value is defined on the company level and can be modified as needed.

For example, your payroll department business rule has a code of PAYR and the department populates as PAYR
in the GL segment field. Accounting requires the payroll department to be identified as account number 8815.
To populate a substitute account number, enter 8815 in the GL Account field on the organization level.

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October 30, 2015 (UltiPro v12.0.2) General Ledger and Labor Allocations Guide

Add a segment sequence

NAVIGATION: System Configuration > Business Rules > GL Segment Sequence

1. From the GL Segment Sequence page, select Add.

2. Enter the segment sequence Code and Description.
3. Define each segment needed with the available cost centers populated in the drop-down list. Each segment
can only be used once in a segment sequence.
4. Select a Delimiter to appear between the segment values, if needed. Options include " ’ * + , - . / ^ _ ~
5. Enter a Constant, if needed. To populate a constant segment:
o Select a Segment
o Select Constant for Delimiter
o Enter the custom characters in the Constant field
6. Select Save.

Note:
Any segment sequence associated with a general ledger rule cannot be deleted. Before deleting a
segment sequence, update the general ledger rules currently using this segment sequence with another
segment sequence.

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General Ledger and Labor Allocations Guide October 30, 2015 (UltiPro v12.0.2)

Configure GL Chart of Accounts

The GL Chart of Accounts table is an optional setting that determines how your GL account numbers are
constructed. If a valid account number is configured in the GL Chart of Accounts table, the chart of accounts
description populates in the GL Summary Distribution report. Otherwise, the system populates the GL base
account description.

The GL Chart of Accounts is an optional setting to use with your general ledger.

Add GL Chart of Accounts:

NAVIGATION: System Configuration > Business Rules > GL Chart of Accounts

1. From the GL Chart of Accounts page, select Add. The Add Record page appears.
2. Enter the GL chart of account code (the full GL account number). The chart of account code must include all
the components of a GL segment sequence.
3. Enter the description of the GL chart of account.
4. Select the Account Type of Debit or Credit.
Note:
The Type field is for reporting purposes only and does not affect how the system calculates the GL entry.
5. Select Add. The Add Record page disappears.

6. Select Save at the top of the page.

7. Review chart of accounts from the GL Summary Distribution report.

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October 30, 2015 (UltiPro v12.0.2) General Ledger and Labor Allocations Guide

Configure GL Rules

The General Ledger Rules define how your assets, liabilities, revenue, and expenses flows in and out of your
organization. Create a GL rule to allocate payroll items such as accruals, earnings, deductions, taxes, or workers'
compensation. The GL Rules define how payroll funds are mapped and report on the GL Summary Distribution
report using Type, Country, Code, Segment Sequence, and Base Account fields. These fields appear from the
GL Rules business rule in an abbreviated format.

Any payroll transaction not mapped to the GL rules falls into suspense. Review the GL Suspense standard report
to view unmapped codes.

GL Rules are divided into four sections.

 Sorting and Filtering: Filter your GL rules quickly by selecting the Find by option. This option enables you
to view or select specific lines of GL to modifying, copy, or delete.

 The GL rules grid: View or hide columns to configure custom GL rule grid and, if needed, export GL rules
to Excel or CSV file. Select the copy icon to clone a GL rule and then change only the necessary fields
instead of entering the entire rule. Copying a GL rule saves time when configuring many GL rules.
Note:
If you do not change a copied GL rule and attempt to save the copied record, a message appears
indicating that duplicate GL rules cannot be saved.
If a value (such as a base account or a segment sequence) is removed while mapped to a GL rule, the missing
value appears as striked-out red text.

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General Ledger and Labor Allocations Guide October 30, 2015 (UltiPro v12.0.2)

 The GL rule configuration: Create a GL Rule to allocate payroll items. From the Add/Change GL Rule
page, define the elements of your GL rule:
 Type: Defines the types of expenses, liabilities, and net pay for each GL record. These code types are
supplied by UltiPro and cannot be modified (required field).
 Country: Determined by your company configuration. Country is only available for customers with
multiple countries configured.
 Code: Includes earnings, deductions, taxes, shifts, workers' compensation, and accruals configured in
your business rules.
 Segment Sequence: Defined in the GL Segment Sequence business rule (required field).
 Base Accounts: Defined in the GL Base Accounts business rule.

 The Cost Center Exceptions section: Cost center exceptions further define a GL rule according to one or
more cost centers. When Setup Cost Center Exceptions is selected, the Cost Center Exceptions section
appears. Use these fields to establish an exception to an existing GL rule. The options available under the
Cost Center include company, pay group, employee name, location, job code, project, and company
organization levels defined from your company configuration.

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October 30, 2015 (UltiPro v12.0.2) General Ledger and Labor Allocations Guide

Add a GL Rule:
NAVIGATION: System Configuration > Business Rules > GL Rules

1. From the GL Rules page select Add. The Add/Change GL Rules page appears.
2. Select the GL rule type. Type is a required field.
3. Select the GL rule country. Only codes assigned to this country appear from the Code drop-down list.
4. Select the GL rule code (earning, deduction, tax code, and more).
Note:
If you do not select a code, all codes for this type default to the GL rule.
5. Select the segment sequence required to create the full GL account number. Segment Sequence is a required
field.
6. Select the GL base account number.
7. Select the Setup Cost Center Exceptions check box to define cost center exceptions.
8. If needed, define any cost center exceptions.
9. Select Save.

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General Ledger and Labor Allocations Guide October 30, 2015 (UltiPro v12.0.2)

General Ledger References

GL Types define the different types of expenses, deductions, accruals, taxes, shifts, and workers' compensation
for each GL record. UltiPro supplies these code types and you cannot add or modify a code type. GL rules must
be configured for each GL Type in order to track the information from a payroll.

GL code type details are available for your reference.

GL Code Description GL Code Debit or Credit Accruals Allowed

Accrued allowed expense AE Debit Yes

Accrued allowed liability AL Credit Yes

Deduction EE payable DE Credit No

Deduction ER liability DL Credit No

Deduction ER expense DR Debit Yes

Earnings expense EE Debit Yes

Net pay checks NC Credit No

Net pay direct deposit ND Credit No

Accrued pending liability PL Credit Yes

Accrued pending expenses PE Debit Yes

Pending not moved debit RE Debit Yes

Pending not moved credit RL Credit Yes

Shift earnings expense SE Debit Yes

Taxes EE payable TE Credit No

Taxes ER liability TL Credit No

Taxes ER expense TR Debit Yes

Workers' compensation EE payable WC Credit No

Workers' compensation ER liability WL Credit No

Workers' compensation ER expense WR Debit Yes

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October 30, 2015 (UltiPro v12.0.2) General Ledger and Labor Allocations Guide

General Ledger Tables

The two major areas for storing GL and Labor Allocation data in UltiPro are the payroll history tables and the
allocation tables.

Payroll History Tables

UltiPro contains detailed payroll history tables that track each component that makes up a pay check for an
employee. The payroll history files contain the information exactly as it was entered, imported, or populated
during the payroll process. The allocation tables are populated from these history tables.

Allocation Tables

UltiPro creates a temporary table containing all the transaction detail by employee identification and generation
number each time you process the GL distribution. The Temporary Allocation table holds this information until
you process a new Labor Allocation and GL distribution. The system overwrites the Temporary Allocation table
every time you process the GL distribution.

After the information in the Temporary Allocation table is posted, the system creates the table containing the
totals (earnings, deductions, and tax amounts) by account number. The GL table is a temporary general ledger
history table created after the Temporary Allocation table is posted. This temporary table is updated during the
creation of the Labor Allocation and GL distribution file.

Process General Ledger

When the general ledger is processed from the Process General Ledger page, the temporary system tables are
populated accordingly. With the processed GL, the GL standard reports are generated as well as the GL export
file. If configured for your company, the GL export provides data in a CSV format for various accounting
systems.

The following reports are available with processing the general ledger:
 GL Summary Distribution
The GL Summary Distribution report provides the account distribution for a particular pay date range. The
GL Summary Distribution report provides the GL segment account number, description, type (credit/debit),
debit and credit amount, totals for each component company, and the grand totals for all component
companies.
Note:
If items appear in the suspense account, refer to the GL Suspense Amounts standard report for details.

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General Ledger and Labor Allocations Guide October 30, 2015 (UltiPro v12.0.2)

 GL Suspense Amounts
Suspense amounts are created when GL rules do not exist for payroll components. The GL Suspense
Amounts report provides each monetary component that is in your suspense account.

Process the General Ledger, including generation of reports and creation of the export file, from the Process
General Ledger page.

Process a General Ledger:

NAVIGATION: Reporting > General Ledger

1. Select the applicable country, if needed.

2. From the General Ledger section, select the option for General Ledger and Labor Allocation or Labor
Allocation.
3. From the Include section, select the applicable combination of earnings, deductions, taxes, or paid time off.
4. From the Company section, select all applicable companies from the Available box and move them to
Selected.
5. From the Export Template section, select the general ledger template from the drop-down list for the export
to be processed.
6. From the Ledger Period section, select an individual pay group from the drop-down list or select All to
process all applicable pay groups. If an individual pay group is selected, the Pay Date - Period End - Type
section appears. Select the applicable From and To payroll dates from the drop-down list.
Note:
When the All value is selected in the Ledger Period section, enter the From and To dates for the calendar
period or use the Calendar icon to select the dates.

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October 30, 2015 (UltiPro v12.0.2) General Ledger and Labor Allocations Guide

7. Select Run.
Important!
When the Process General Ledger task is complete, the GL Summary Distribution and GL Summary
Suspense reports appear in the Standard Reports > Completed tab. The GL Export file appears on the
File Transfers page.
8. Select Reset to continue to process general ledger for more pay groups, if needed.

UltiPro® is a registered trademark of The Ultimate Software Group, Inc.

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No part of this document may be reproduced in any form or by any means or stored in a database or retrieval system without the prior written
authorization of The Ultimate Software Group, Inc. Information in this document is subject to change without notice. All company, organization, person,
and event references are fictional. Any resemblance to actual companies, organizations, persons, and events is entirely coincidental. Nothing herein
constitutes legal advice, tax advice, or any other advice.

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